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(Updates with closing grain prices; additional analyst comments)

CHICAGO -(Dow Jones)- The U.S. Department of Agriculture Friday cut its projections for 2008 U.S. corn and soybean production, keeping supplies of the commodities tight and helping lift grain prices.

The reduction in crop size, which was the result of poor growing weather in August, could be the start of a trend, especially because the crops were already lagging developmentally because of delayed planting and spring floods in parts of the Midwest, grain analysts warned.

The USDA estimates U.S. 2008 corn production at 12.072 billion bushels, down 216 million from the agency’s August estimate. The soybean crop is expected to come in at 2.934 billion bushels, down 39 million bushels from last month’s forecast. In both cases, the agency said, weather during August lowered the average yield for each crop, thereby lowering total production.

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Tags: Commodities, corn, Department of Agriculture, Economy, Environment, Food, Food Prices, Grain, Monsanto, soybeans, Syngenta, U.S., USDA

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- At stake is no less than control of the world’s food supply.

- BIODIVERSITY: Privatisation Making Seeds Themselves Infertile

Companies accused of ‘profiteering’ as they attempt to patent crop genes

Giant biotech companies are privatising the world’s protection against climate change by filing hundreds of monopoly patents on genes that help crops resist it, a new investigation has concluded.

The study - by the authoritative Action Group on Erosion, Technology and Concentration (ETC Group), based in Ottawa, Canada - has found that nine firms have filed at least 532 patents around the world on about 55 different genes offering protection against heat, drought and floods. If granted, the companies would be given control of crucial natural raw material needed to maintain food supplies in an increasingly hungry world.

Last week, as world leaders met in Rome to discuss the food crisis, GM companies promoted their technologies as the answer to hunger. On Thursday, Monsanto - the biggest and most controversial firm - announced a “commitment” to increase food production, partly by developing crops that need less water.

“Together we must meet the needs for increased food, fibre and energy, while preserving the environment,” said the company’s head, Hugh Grant. “These commitments represent the beginning of a journey that we will expand on and deepen in the years ahead.”

The ETC Group calls this “an opportunistic public relations strategy”, adding: “Monsanto’s business is selling patented seeds for industrial agriculture - not addressing a humanitarian food crisis.”

The report of its investigation shows that Monsanto and BASF - which last year announced a $1.5bn “collaboration” to develop new GM crops, including “ones more tolerant to adverse environmental conditions such as drought” - have between them filed patents for 27 of the 55 genes. Others had been filed by companies such as Bayer, Syngenta and Dow.

The reports says some of the applications are sweeping. One would cover more than 30 crops from oats to oil palms, triticale to tea, and potatoes to perennial grass - “in other words, virtually all food crops”.

It says the “corporate grab on climate-tolerant genes” means that “a handful of transnational companies are now positioned to determine who gets access to key genetic traits and what price they must pay”.

Small farmers in developing countries will be particularly hard hit by such “climate-change profiteering”. Patenting will make the crops expensive and ensure that poor farmers have to buy them every year, by prohibiting them from saving seeds from one harvest to grow for the next.

According to the report, conventional, non-GM breeding techniques are making remarkable progress in developing crops that can tolerate heat, floods and drought. A new Asian rice, due to go on the market next year, can stand being submerged for two weeks without affecting yields, while a new African one flowers early in the morning, escaping the heat of the day.

But, it says, “the patent grab is sucking up money and resources that could be spent on affordable, farmer-based strategies for survival”.

It concludes: “These patented technologies will ultimately concentrate corporate power, drive up costs, inhibit independent research and further undermine the rights of farmers to save and exchange seeds”.

But Croplife, which represents the world’s plant-science industry, retorts; “Patenting is very important. That is how we protect intellectual property and ensure we continue to bring new innovations to the marketplace.” It denies that biotechnology companies are seeking to monopolise world food supplies. Continue reading »

Tags: BASF, biodiversity, Biotech, Food, Food Crisis, Food Prices, Food shortages, GMO, Monsanto, rice, Syngenta

BONN, May 22 (IPS) - Seeds were once for ever. After harvest, a few from the crop would be planted for the following year, and so it went on.

Now, biochemical industry giants are making seeds themselves infertile. You sow them this year, and that’s it. For next year’s crop, you need brand new seeds — you would have to buy them, of course.

Twenty-five years ago, there were at least 7,000 seed growers worldwide, and none of them controlled more than one percent of the global market. Today, after a takeover spree, 10 major biochemical multinationals, including Monsanto, DuPont-Pioneer, Syngenta, Bayer Cropsciencie, BASF, and Dow Agrosciences, control more than 50 percent of the seeds market.

“The goal of these companies is, of course, to make profits,” Benedict Haerling, researcher at the German non-governmental organisation Future of Agriculture, told IPS. “In order to improve their profits, they all apply one strategy to increase their control of the market: they impose upon farmers worldwide the so-called vertical integration of inputs, from seeds to fertilisers to pesticides, all from one brand.” Compulsory customer loyalty, you might call it.

And through biochemical manipulation, including genetic modifications, many companies have made sure the harvest you obtain cannot be sown again.

Such “vertical integration of agricultural inputs” has transformed agriculture in developing countries into a two-class business, Angelika Hillbeck, researcher on bio-safety and agriculture at the Swiss Federal Institute of Technology in Zurich told IPS.

“In the developing countries there is a class of farmers with large plantations and enough money who can afford to buy all inputs from the major biochemical companies, from seeds and fertilisers to pesticides and conservatives.” But there are small farmers for whom the biochemical markets are out of reach.

Hillbeck and Haerling are scientific counsellors to non-governmental organisations and associations of small farmers in developing countries who are attending the UN conference on biological diversity in Bonn.

The conference aims at reviewing international compliance with the targets adopted in 2002 to significantly reduce the rate of decimation of species at the global and national level by 2010. It is also set to formulate binding international rules on legal measures to stop the loss of biodiversity. Continue reading »

Tags: BASF, Bayer Cropsciencie, biodiversity, Dow Agrosciences, DuPont-Pioneer, farmers, Food, food industry, GMO, Monsanto, pesticides, seeds, Syngenta, Terminator seeds, U.N.

We need to overturn food policy, now!

GRAIN

For some time now the rising cost of food all over the world has taken households, governments and the media by storm. The price of wheat has gone up by 130% over the last year.[1] Rice has doubled in price in Asia in the first three months of 2008 alone,[2] and just last week it hit record highs on the Chicago futures market.[3] For most of 2007 the spiralling cost of cooking oil, fruit and vegetables, as well as of dairy and meat, led to a fall in the consumption of these items. From Haiti to Cameroon to Bangladesh, people have been taking to the streets in anger at being unable to afford the food they need. In fear of political turmoil, world leaders have been calling for more food aid, as well as for more funds and technology to boost agricultural production. Cereal exporting countries, meanwhile, are closing their borders to protect their domestic markets, while other countries have been forced into panic buying. Is this a price blip? No. A food shortage? Not that either. We are in a structural meltdown, the direct result of three decades of neoliberal globalisation.

Farmers across the world produced a record 2.3 billion tons of grain in 2007, up 4% on the previous year. Since 1961 the world’s cereal output has tripled, while the population has doubled. Stocks are at their lowest level in 30 years, it’s true,[4] but the bottom line is that there is enough food produced in the world to feed the population. The problem is that it doesn’t get to all of those who need it. Less than half of the world’s grain production is directly eaten by people. Most goes into animal feed and, increasingly, biofuels – massive inflexible industrial chains. In fact, once you look behind the cold curtain of statistics, you realise that something is fundamentally wrong with our food system. We have allowed food to be transformed from something that nourishes people and provides them with secure livelihoods into a commodity for speculation and bargaining. The perverse logic of this system has come to a head. Today it is staring us in the face that this system puts the profits of investors before the food needs of people. Continue reading »

Tags: biofuel, Burkina Faso, Cambodia, China, Commodities, Egypt, Food Riots, Food shortages, Government, Grain, Haiti, hedge funds, hunger, IMF, India, Meltdown, Monsanto, Philippines, rice, Robert Zoellick, Syngenta, U.N., Vietnam, Wal-Mart, wheat, World Bank, World Food Programme, WTO

For decades, wheat was king on the Great Plains and prices were low everywhere. Those days are over.

At Stephen Fleishman’s busy Bethesda shop, the era of the 95-cent bagel is coming to an end.

Breaking the dollar barrier “scares me,” said the Bronx-born owner of Bethesda Bagels. But with 100-pound bags of North Dakota flour now above $50 — more than double what they were a few months ago — he sees no alternative to a hefty increase in the price of his signature product, a bagel made by hand in the back of the store.

“I’ve never seen anything like this in 20 years,” he said. “It’s a nightmare.”

Fleishman and his customers are hardly alone. Across America, turmoil in the world wheat markets has sent prices of bread, pasta, noodles, pizza, pastry and bagels skittering upward, bringing protests from consumers.

But underlying this food inflation are changes that are transforming U.S. agriculture and making a return to the long era of cheap wheat products doubtful at best.

Half a continent away, in the North Dakota country that grows the high-quality wheats used in Fleishman’s bagels, many farmers are cutting back on growing wheat in favor of more profitable, less disease-prone corn and soybeans for ethanol refineries and Asian consumers.

“Wheat was king once,” said David Braaten, whose Norwegian immigrant grandparents built their Kindred, N.D., farm around wheat a century ago. “Now I just don’t want to grow it. It’s not a consistent crop.”

In the 1980s, more than half the farm’s acres were wheat. This year only one in 10 will be, and 40 percent will go to soybeans. Braaten and other farmers are considering investing in a $180 million plant to turn the beans into animal feed and cooking oil, both now in strong demand in China. And to stress his hopes for ethanol, his business card shows a sketch of a fuel pump. Continue reading »

Tags: breadbasket, Canada, China, corn, ethanol, farmers, Food Prices, Grain, Inflation, Monsanto, soybeans, Syngenta, U.S., USDA, wheat

(NaturalNews) It’s got all the exciting elements of a science fiction novel. A seed bank as strong as a fortress built into the side of a mountain in the remote arctic wilderness built for the purpose of preserving food sources in the event of a disaster. Among the specifications for the bank are dual blast-proof doors with motion sensors, two airlocks, and one-meter thick walls of steel reinforced concrete.

“If you control the oil you control the country; if you control the food you control the population.” — Henry Kissinger

Built on the island of Spitsbergen in the Barents Sea near the Arctic Ocean in the country of Norway, a group of wealthy corporations has invested millions of dollars in their project named the Svalbard Global Seed Vault. The mission statement is: “So that crop diversity can be conserved for the future”.

The seed vault will have the capacity to house up to 4.5 million different varieties of seeds from all over the planet. The Doomsday Vault will officially open on February 26, 2008. There will be no full time staff necessary to operate the seed vault. It has been designed to run itself independent of human direction. Svalbard will be managed and overseen by the Rome-based Global Crop Diversity Trust.

The question begs asking - Why the need for this super fortress seed bank when adequate protective measures for the earth’s seeds already exist around the world? Delving into the details of this project is an interesting undertaking.

The group of investors includes The Bill and Melinda Gates Foundation, The Rockefeller Foundation, Monsanto Corporation, Syngenta Foundation, and the Government of Norway. Both Monsanto Corporation (US based) and Syngenta Foundation (Swiss based) are leading agricultural companies active in the development of genetically modified (GMO) plant seeds and related agricultural chemicals. Continue reading »

Tags: Barents Sea, Doomsday, Dow Chemical., DuPont, Eugenics, Foundation, Gates Foundation, GMO, Henry Kissinger, IRRI, Monsanto, Norway, Rockefeller, seed, Spitsbergen, Svalbard Global Seed Vault, Syngenta, vault